Of course, Web-based mail isn't for everyone. A mail address from work, based on Microsoft Exchange or IBM (NYSE: IBM) Lotus Notes, is the main digital lifeline for lots of Americans. Many more are using the address that comes with a Comcast (Nasdaq: CMCSA) cable modem or an AT&T (NYSE: T) DSL line. Right now, Yahoo! and Microsoft are winning the race to make Web-mail converts out of these untold millions of Web denizens. And AOL is losing, big time.

This is very, very bad news for AOL. As fellow Fool Rick Munarriz said earlier this year, "The problem with AOL is that there doesn't seem to be a whole lot of growth beyond its free web-based email service."

When growth is dead even in that crucial eyeball-magnet department, I don't know how Time Warner expects to make money off this former blue-chip brand. Neither does Rick, and the mother ship is officially giving up on AOL. If you're a Time Warner shareholder today, I hope your investment thesis rests on the company's media assets. If you're hoping for a healthy return from the company's Internet ventures, well, I think you should get out right away.

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I am afraid the same will happen to Google. I went to buy 5 Google phones at T mobile and they wanted 300 dollars and you have to buy a data plan plus storage is extra. Are they High? Instead I bought 5 iphones with data plan with 16 gigs of storage so storage was free and the cost was less. For 299 you can get 32gigs iphones.

Google needs to split its stock otherwise game over. They are just another company with mediocre growth. Their PE is too low and won't go up because small investor will not touch the stock at this price. Remember they were burned from the 700 plus to the current price.

Most importantly they need to get growth from youtube revenue. Here is an idea propose to real estate companies and car companies to put their ads in youtube instead of them residing on their own storage. Same for for other companies. Embed these ads in the browser so it is seamless and charge for it based on views. not really cloud but who care add to the top line right? Growth is the key word.

Stockgripes, I'm alluding to Gmail simply because that's the fastest grower of the bunch -- and because Google knows how to make money out of fresh traffi in a way that is alien to Yahoo and Microsoft. That's all.

Your characterization of Google as the fastest growing email provider is misleading. Yes, it is true on a percentage basis. But if you look at the actual numbers, Yahoo added 14.6 million email users vs. Google's 7.4 million additions - nearly twice as many users. It's always harder to keep up percentage gains as the base number gets larger. I think Yahoo did an admirable job increasing their numbers by 16% year over year.

Of course, your comment about Google knowing how to make money off fresh traffic is spot on.

Full disclosure: I am an AT&T employee and we have a partnership with Yahoo. This post represents my personal opinion and in no way reflects an official (or unofficial) position of AT&T.